Q2FY19 – Portfolio Performance

In this post, we detail the Q2FY19 Alphamultiple Portfolio performance for the quarter ended 30th September, 2018. We document our portfolio performance on a quarterly basis for the benefit of our readers and those who are interested in knowing the performance of our advisory service. This post focuses not on the company results but on the price performance.
Q2FY19 Alphamultiple Portfolio Performance

Q2FY19 Alphamultiple Portfolio Performance

While the quarter was a great one for the largecap indices, the small & midcap indices performed poor by delivering -5.19% and -13.68% returns respectively.

Q2FY19 Alphamultiple Portfolio Performance

The largest drawdown on our portfolio will be ~ 17% from the peak. However, for most investors the drawdown is in the range of 10% to 15% from the peak due to low allocation to equities and high cash position of the portfolio. We have been on more than 50% cash in the portfolio since early 2017. The cash will be utilized to add good companies at low to fair valuations.
We booked out Dewan Housing and Muthoot Finance in June by nearly 50%. Thus, our portfolio did not take a major hit in the recent NBFC crisis. We have avoided NBFC space over the last few years except for the above mentioned companies. Investors will appreciate that we do not follow any thematic investing and avoid chasing trends.

Are we satisfied?

Yes we are. Markets have their own seasons and at present we are going through a steep correction in small & midcaps where the valuations were astronomically high. We feel that our defensive stance is now paying off as our portfolio is withering through the market correction without any major drawdown.

Is this a good time to invest?

Absolutely. If you are a serious investor, you have to face all the market conditions with confidence and patience. You cannot always be successful in trying to time the market by buying at the lows and selling at the peak. Investors who start now might not see consistently high returns over the next few months but they will be more disciplined than those who start investing when the bull market’s momentum is high.

Where are we investing?

Our approach is not thematic but it is company specific. Ideally, we look to buy companies which can offer an expansion in valuation multiples as well as earnings growth. Also, it is important to Own what you know and know what you know.

How many stocks do we own in our portfolio: Live Portfolio

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